Can I Sell CBD Products on Etsy?

Under Etsy’s legal terms and policies, cannabidiol (CBD) is considered a controlled substance and is prohibited from being sold on Etsy. Etsy does not condone the sale of any cannabis products, and Etsy specifically excludes CBD from sale on their site. 

Unfortunately, selling CBD is not possible on Etsy since Etsy considers CBD a controlled substance, even though this is not true in countries like the United States of America, where CBD is legal nationwide. Learn more about how to sell CBD from our articles on “How to Sell CBD on Amazon?“

Etsy’s house rules for “Plants, Herbs, Seeds, and Soil” has CBD listed as a controlled substance that is not allowed to be sold on their platform.

CBD is not allowed to be sold on Etsy because Etsy considers CBD a drug. This is a similar policy to other social media platforms like Facebook, TikTok, Instagram, and Twitter. Since CBD stems from the cannabis plant, which marijuana is derived from, and marijuana is a controlled substance in the USA then, Etsy considers CBD a controlled substance too. 

The reality is that this is a liability issue for Etsy since CBD is indistinguishable from marijuana, a controlled substance. All it takes is a few people to begin selling marijuana disguised as CBD on their platform to expose them to serious legal liability. Even more, the quality of CBD products is largely unregulated and if one of their users is harmed by CBD sold on their platform, this could have serious legal repercussions for Etsy. 

Alternative Merchant Accounts for CBD

Not only is Etsy a global marketplace for people who sell unique products, but they are also a merchant account to process sellers’ payment transactions. Hemp-derived CBD transactions are not processed by their platform. This leaves CBD sellers back to square one with finding a reputable, trustworthy, fair, and compliant CBD payment gateway for their CBD business. 

The vast majority of mainstream third-party payment gateways do not process CBD transactions for CBD since they consider CBD too much of a liability risk. However, this does not mean you must work with an offshore merchant account when selling CBD products. There is one mainstream CBD payment processor where you can sell CBD products online.

Hemp-derived CBD products are allowed to be sold on Shopify. Whether you are selling white-label CBD or private-label CBD, Shopify enables your business to sell CBD online. Shopify works with Digipay and Pinwheel to process your hemp and CBD oil business transactions. 

Once you’re set up on Shopify, you can process high-risk sales for your CBD brand. However, working with Shopify does not solve the challenge of marketing your CBD store and overcoming CBD advertising platform regulations. How can your business market CBD products without all of the red tape?

How to Sell CBD Oil and Hemp on Google

Google does not allow paid advertising of CBD on their search engine, but they do allow organic selling of CBD on their platform. Can you sell CBD on Google? The answer is yes, as long as it is on the organic search results, which make up 94% of all clicks on Google. Here is the difference between the paid search results and the organic search results:

Paid Search Results

The paid search results appear at the top of Google with a little green box that reads ‘ad,’ and the only way to get placed in the paid search results is to pay Google for placement. Each time your ad is clicked, you pay. Paid search is an excellent source of short-term revenue, but the costs increase considerably over time, and your ads become less effective.

Since everyone in your business industry is competing for the same clicks, the cost is driven up, and your ads become less effective as consumers become used to your advertising. This requires you to constantly adjust your ads over time which drives down your profit margin and increases your customer acquisition costs. 

Even more, the paid search results only make up 6% of all clicks on Google and less than 15% of all website traffic, so you have a limited reach. Paid search ads are highly effective in the short term, but they become too expensive in the long term, which is why it is best to invest in organic search results simultaneously. Unfortunately, CBD companies are prohibited from CBD paid advertising on Google. 

Organic Search Results

Organic search results make up 94% of all clicks on Google and over 50% of all website traffic on the internet. Although they appear below the paid search results, users of Google trust the organic search results more and click the organic search results more. You cannot buy your way into the organic search results, and paying for ads has no effect on your placement in the organic search results.

The only way to earn revenue and traffic from organic search results is by using CBD SEO. For CBD companies, the organic search results are where you can directly promote and sell CBD without restrictions. Remember, CBD SEO is a long-term strategy where the results compound over time. Comparing the ROI of SEO to paid advertising in the short term does not make sense when you focus on SEO and evaluate the ROI over the long term, as in 6, 12, and 18 months. Here is a visual comparison of SEO versus Paid Advertising:

Is it Legal to Sell CBD on Etsy?

No Etsy considers a CBD-prohibited substance and bans CBD from being sold on their platform.

Do You Need FDA Approval to Sell CBD?

You do not need FDA approval to sell CBD in the USA. However, strict CBD advertising laws restrict how you label, package, and market your CBD products. 

Where Can I Sell my CBD Online?

You can sell CBD online in the organic search results without restrictions using CBD SEO.